Once considered a niche within traditional retail, D2C brands are now at the forefront, writes Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group
India is at the cusp of a consumer commerce revolution that is paving the way for Direct-to-Consumer (D2C) brands to emerge as agile, consumer-centric contenders in the retail landscape. As the country’s Ecommerce ecosystem undergoes a pivotal transformation, a new era of opportunity is unfolding for digitally native, customer-first businesses. Powered by accelerated digital adoption, evolving consumer expectations, and a forward-looking policy environment, India is rapidly becoming one of the most dynamic and fertile ecosystems for D2C innovation and scale.
Once considered a niche within traditional retail, D2C brands are now at the forefront, championing innovation, reimagining supply chains, and fundamentally redefining how businesses engage with their customers. India is proving to be a fertile ground for this model. The country’s D2C sector is expected to grow from approximately $61.3 billion by FY 27, at a CAGR of around 38%. This surge is rooted in evolving consumer behavior; shoppers today are seeking personalized and transparent experiences, reflecting a new structure in how brands transact, communicate, and build trust.
Emerging global trends
Across global markets – from New York to Singapore, the D2C landscape is rapidly evolving. Today’s consumers are no longer satisfied with one-size-fits-all experiences. This shift is clearly visible in the way they discover and engage with brands. A quick scroll through social media often leads to the discovery of a homegrown D2C brand, offering transparent stories, authentic customer experiences, and direct ways to engage. Shoppers aren’t just buying a product; they are watching behind-the-scenes content, voting on product launches, and receiving personalized messages post-purchase.
It is these small but meaningful interactions that are reshaping brand loyalty. The sense of being heard and involved is what sets the D2C experience apart, especially in a digitally connected market like India.
India’s rising online consumer spending is estimated to be $300 billion by 2030, aiding the growth of new-age brands, according to a report. These brands are deploying new tactics – from influencer-led launches and frequent product refreshes to integrated supply chains that cut out traditional intermediaries. Markets such as the US and Southeast Asia are seeing a clear shift toward omnichannel strategies. These include digital storefronts, online marketplaces, and temporary offline formats.
Advancements in AI are enabling D2C brands to fine-tune this approach. Predictive tools and data analytics are powering personalization at scale. Brands can now understand customer needs more accurately, optimize inventory, and lower acquisition costs. The result is higher engagement and better retention.
Ecommerce and quick commerce as growth levers
Ecommerce has played a key role in making all this possible. Lower barriers to entry, access to global marketplaces, digital payment infrastructure, and logistics innovation have made it easier for even small and early-stage businesses to reach customers directly. Digital platforms have become the primary engines of growth for modern brands – offering reach, agility, and scalability that traditional retail alone can no longer match.
Quick commerce is further reinforcing this shift. Platforms offering deliveries within minutes are transforming how people shop. For D2C brands, this is a high-frequency opportunity to tap into impulse purchases. Categories like snacks, beverages, personal care, and wellness are already benefiting. Redseer projects that India’s quick commerce market will reach $5.5 billion by 2025, growing at over 50% CAGR.
Quick commerce also functions as a discovery engine. Consumers are more open to trying new products when the wait is minimal and the experience seamless. This enables D2C brands to test ideas, gather feedback, and iterate quickly. Traditional go-to-market timelines can now be compressed.
Further, the reach of these platforms extends deep into urban and semi-urban zones. They have moved beyond fulfilling convenience to shaping preference. For digital-first consumers, the brand that arrives fastest often becomes the most familiar. D2C players that can deliver with consistency, speed, and simplicity will gain loyalty in this environment.
Changing policy landscape
India’s policy environment is accelerating the future of commerce. Initiatives like Digital India are democratising access to digital infrastructure, especially in Tier 2 and Tier 3 cities. Brands that were once limited to local markets now have the tools to expand nationally, without relying on traditional retail networks.
At the same time, programs such as Make in India and the Production Linked Incentive (PLI) schemes are strengthening domestic manufacturing. By enabling cost-efficient production and operational scale, homegrown brands are empowered to compete more confidently in both local and global markets.
By streamlining regulations and improving ease of doing business, the government is boosting investor confidence, paving the way for more capital infusion, technology transfer, and global partnerships that help scale innovative D2C ventures.
Embracing rural and semi-urban demand
India’s D2C journey is poised for its next big leap, driven by the immense potential of rural and semi-urban markets. With Tier 2 and smaller cities expected to account for 88% of all online shoppers between 2020 and 2030 (RedSeer), these regions represent the heart of the country’s evolving consumption story. The surge in rural India’s FMCG basket – growing 60% between 2022 and 2024 – is a strong indicator of rising disposable incomes and a deeper digital engagement.
Fuelled by increasing mobile penetration and growing internet accessibility, rural India is more connected and commerce-ready than ever before. While D2C presence in these areas is still emerging, the few brands that have ventured in are already reaping benefits like lower acquisition costs, better unit economics, and higher customer lifetime value.
As India’s digital infrastructure expands across districts and dialects, D2C brands have a unique opportunity to drive inclusive growth. Those that strategically invest in these markets stand to unlock sustained scalability, customer loyalty, and long-term relevance in one of the world’s most dynamic consumer landscapes.
